According to the 2023 public debt report drawn up by Mozambique’s Ministry of Economy and Finance, the World Bank, through the International Development Association (IDA), holds 29% of the country’s total external debt, which exceeds 10.2 billion dollars.
After contracting by 3.2% in 2022, the nominal stock of the government’s external debt increased by 2.4% over the course of 2023, mainly due to disbursements from the IMF and Japan. The report highlights that external debt has shown a stabilizing trend, not returning to the high levels of 2021.
China is the second largest creditor, with 15% of the debt, followed by the IMF with 10%, and Portugal and Japan, both with 4%. The report also mentions that Mozambique issued “MOZAM 2032” Eurobonds worth 900 million dollars, equivalent to 9% of the total debt.
With regard to external financing, the report notes that multilateral debt has generated positive net flows (an increase in the stock), while bilateral debt has generated negative net flows.
Last week, the president of the World Bank, Ajay Banga, highlighted Mozambique’s role as the base of the electricity market in southern Africa and promised new partnerships to boost the national energy sector. In 2023, the World Bank approved a credit of 300 million dollars for the “Mais Oportunidades” project, which aims to create more than 26,000 new jobs by 2029.
